The Federal Government has secured a $1.3 billion investment partnership with the Africa Finance Corporation (AFC) to develop a large-scale alumina refinery and strengthen Nigeria’s mineral exploration capacity as part of efforts to reposition the solid minerals sector.
The agreement covers the establishment of a one-million-tonne-per-annum alumina processing facility, a nationwide geoscience data programme and the creation of a dedicated investment vehicle to accelerate mineral exploration and production activities.
The proposed refinery is designed to process one million tonnes of bauxite annually at approximately 95 percent operational capacity over a projected 20-year lifespan. Total alumina output across the lifecycle is estimated at about 19 million tonnes.
Government officials said the investment represents one of the most significant capital commitments to Nigeria’s mining industry in recent years and aligns with the country’s broader economic diversification strategy.
The alumina project alone is projected to contribute approximately $1.2 billion annually to Gross Domestic Product and generate an estimated $25 billion in cumulative economic value over its operational lifespan.
Foreign exchange earnings are expected to reach roughly $8 billion over the same period.
Authorities noted that feasibility assessments conducted by AFC and relevant mineral development institutions confirmed the commercial viability and long-term competitiveness of the refinery.
The partnership also includes a geoscience mapping initiative aimed at improving mineral data availability nationwide, a key constraint that has historically limited large-scale mining investments in Nigeria.
The special purpose investment platform to be created under the agreement will provide structured financing support for mineral exploration and downstream processing.
The development comes as Nigeria intensifies reforms in the solid minerals sector, focusing on regulatory transparency, licensing efficiency and industrial processing capacity.
The government has stated its intention to reduce reliance on crude oil revenues by expanding value-added mineral production and attracting institutional capital into mining infrastructure.
The $1.3 billion commitment signals growing investor confidence in Nigeria’s mining reform framework and positions the country to expand its role in Africa’s industrial minerals processing market.